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Upgrading the car fleet: evidence from an Italian scrappage scheme

Author

Listed:
  • Giovanni Marin

    (University of Urbino Carlo Bo, Italy; SEEDS, Italy)

  • Roberto Zoboli

    (Catholic University of Milan, Italy; SEEDS, Italy)

Abstract

Car scrappage schemes are generally introduced to upgrade the car fleet to reduce environmental pressures arising from private transportation. The effectiveness of these schemes has been often questioned. The aim of this paper is to quantify the impact of an Italian car scrappage scheme on the rate of deregistration of old cars. The empirical evaluation of the policy is made possible by a discontinuity in the age of cars that could be subject to the support scheme. Results, based on detailed information on the car fleet and the deregistration of cars in the Italian market, suggest a very large impact of the scheme.

Suggested Citation

  • Giovanni Marin & Roberto Zoboli, 2018. "Upgrading the car fleet: evidence from an Italian scrappage scheme," SEEDS Working Papers 1418, SEEDS, Sustainability Environmental Economics and Dynamics Studies, revised Dec 2018.
    • Handle: RePEc:srt:wpaper:1418
    as

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    References listed on IDEAS

    as
    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2009. "Mostly Harmless Econometrics: An Empiricist's Companion," Economics Books, Princeton University Press, edition 1, number 8769.
    2. Grigolon, Laura & Leheyda, Nina & Verboven, Frank, 2016. "Scrapping subsidies during the financial crisis — Evidence from Europe," International Journal of Industrial Organization, Elsevier, vol. 44(C), pages 41-59.
    3. Bert Van Wee & Gerard De Jong & Hans Nijland, 2011. "Accelerating Car Scrappage: A Review of Research into the Environmental Impacts," Transport Reviews, Taylor & Francis Journals, vol. 31(5), pages 549-569.
    4. Aldred, Rachel & Tepe, Daniela, 2011. "Framing scrappage in Germany and the UK: from climate discourse to recession talk?," Journal of Transport Geography, Elsevier, vol. 19(6), pages 1563-1569.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Car scrappage schemes; Regression Discontinuity Design;

    JEL classification:

    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy

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